Two Dutch entrepreneurs are trying to sell oxygen in a can. The product, called OGO, costs about £8.99 and gives five minutes worth of oxygen.
Richard Hammond of Spirit, the advertising agency appointed to handle OGO’s launch in the UK, is confident of success. He says that bottles of water were once considered unmarketable because water was freely available from the tap.
Hepoints out: « The mineral water market didn’t exist fifteen years ago and now it is worth $25bn worldwide.
The product should be available for the largest target group as possible. Our product is currently a bit expensive comparatively to what it contains (water and oxygen), but it's affordable to almost everybody. One can costs £8.
It's important to keep in mind that theproduct is not something people will consume everyday but once in a while when they feel the need to. This being so, a consumer can pay 8$ for a moment of relaxation and well being.
This new product is a can (See: presentation of the packaging) with pure oxygen in it that can be inhaled.
This innovative product meets the expectations of more and more persons. Indeed, nowadays,the effects of tiredness, everyday aches and stress are ubiquitous in our society. WE have the solution!
Oxygen is vital for human beings and has got exceptional beneficial effects and is 100% natural. Ogo gives you strength, vitality and dynamism. It will minimize the stress and tiredness of each consumer. It is excellent for sportsmen, as well, because it raises the endurance.
It is verygood against the everyday headaches.
Market target: Our aim is to reach a high profitability. This is the reason why we decided to target many categories of people. We are aware of the fact that we won’t be a convenience good immediately, even if it is our long-term objective! Also, we don’t want to target only sportspersons.
Target nucleus: We are going to focus mostly on citydwellers because it is in cities that we counted the most important number of people who suffer from stress and tiredness. We won’t leave the sportspersons aside anyway.
Our price is £8.
This price is justified by the production cost of the can with mouthpiece (See: description of the packaging).
Our product is difficult to sell. Indeed, a lot of consumers are going to be hostileto the idea to swallow oxygen from a can. This price, higher than the other cans, is a strategy to reinsure psychologically the customer who will see a guarantee of quality in it.
In order to break into the market in which competitors are almost non-existent, we are going to use a policy of penetration and adaptation. Indeed, the practiced price of a competitor called GOX is 9.99€ per can. Wedecided to align to the price practiced by our competitor, a little bit less expensive, in order to break into the market.
Our short term strategy is to become known and to offer our cheaper product to make our potential customers try it. On a long-term basis, we will increase the price according to the psychological price that could be established (impossible for the time being because it isan innovation!) and our costs. Of course, the objective is to be as much profitable as possible.
Short-term basis: Our product being innovative, our objective will be to make it become known. And then for the launching it will be better to distribute our product on the Internet, in superstores or small supermarkets specialised in sport, in oxygen bars and to finish,at the chemist’s (according to the law and the negotiation).
Internet: We will have to create a retail website to sell our products directly.
Superstores and small supermarkets specialised in sport: Sportspersons represent a sample of our target; we must be in this kind of shops.
It will be interesting to negotiate with these retailers in order to...
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